When you want to buy a property, whether it's an apartment, condo, townhouse, or house, if you are not able to pay for it in full, then you need to borrow monetary loans. A mortgage is a loan that you borrow from financial institutes to cover the cost of the property you want to purchase, and it is usually paid in installments over a set period of time. The concept is no different than any other loans out there where you are expected to pay interest on top of the principal (amount you want to borrow) over time.
If you are looking for obtaining mortgage quotes, or are simply wanting to find out more about how mortgage works, you have came to the right place. At MyMortgageCalculator.org, we offer many free mortgage calculators to help you understand how mortgage works, what kind of mortgage are you able to afford, the difference between renting and buying, and much more. We also partner with many mortgage loan providers across the United States to help you find, compare, and save money on mortgage quotes.
Mortgage Amortization Calculator
Using our free Mortgage Payment Calculator, you can generate mortgage amortization reports that will give you a much better idea in understanding your mortgage payments. The report is divided into 3 sections:
- Mortgage Summary - Based on your input, you will get a summary of number of payments, monthly payment amount, pay off date, total interest paid, total PMI paid, total tax paid, total insurance paid, and total amount paid to maintain the property for the mortgage period.
- Loan Comparison - You will get a table of interest paid for different loan terms and payment methods. This will help you understand how much you can save on interest by going for different loan terms or payment methods. (Available on Fixed Rate Mortgage Amortization Reports Only)
- Amortization Chart - This is sometimes referred to as amortization table or amortization schedule. This chart will show you, in details, the breakdown of payments. So you will know exactly how much principal, interest. PMI, tax, and insurance you are paying for each payment, and the remaining loan balance after each payment.
Mortgage Affordability Calculator
If you are not sure what kind of property and mortgage you can afford, we can find that out for you based on your current income and savings that you are willing to put in as down payment. We will take everything, including property tax, insurance, PMI, into consideration to find the right mortgage for you. The report is divided into 2 sections:
- Mortgage Budget Summary - Based on your overall expenses and your income (spendable salary), Your mortgage budget will be calculated and displayed.
- Affordable Mortgage Comparison - With the amount of your mortgage budget and available down payment, you will get a table of different homes and mortgages you can afford on various loan terms and payment methods.
Rent or Buy?
This is a common question to ask. Owning a property will give you a sense of accomplishment and financial security, but it may not be a positive investment all the time. The net value of your investment into your property depends on a couple of major factors - down payment, mortgage loan sum, mortgage interest rate, home inflation and home value cap. And also affected by some small factors such as property tax, insurance, and PMI.
Renting is giving money away. However, it's a different story when you have cash available to invest into ETF, Mutual Funds, RRSP, Stocks...etc. where with enough growth and initial deposit in investment, the overall gain can easily overcome the growth of property inflation, resulting in higher net gain. With that said, there are more risks involved in investing into stocks and mutual funds as compared to home inflation.
Rent vs. Buy Calculator
Use our Rent vs. Buy calculator on the right to see a detailed comparison report on buying and renting based on your current financial standings. Here is a general rule of thumb:
- If you don't have cash available, buying is usually better than renting since you get to keep a portion of your investment. However, it would be negative investment for both scenarios.
- If you have cash available, but don't know anything about investing or don't know anyone who can help you with investing, buying is usually better than renting since you also get to keep a portion of your investment. However, the net value of your total investment, whether if it will be positive or negative, depends on the amount of down payment you put in.
- If you have cash available, and know how to invest or know someone who can help you with investing, use the Rent vs. Buy calculator on the right to see which is better for you.